Multifamily Properties: Save by Going Green
Going green will not only benefit the environment but also it going to save lots of money in energy bills making the investment more profitable in the long run.
Investors, developers and management companies started realizing the importance of making their properties environmental efficient. Fannie Mae announced that will give discounts on interest rates in buildings that have energy stamp approval.
After this implementations were approved in February 2015, companies started being more conscious about this matter, “0-basis-point reduction in the interest rate of a multifamily refinance, acquisition or supplemental mortgage loan will be automatic for an energy efficient-certified property, according to Fannie Mae. That means, for example, that interest on a market rate loan of 4 percent will drop to 3.9 percent. On a $10 million loan amortized over 30 years, that’s a savings of $95,000, says Fannie Mae.”
These resolution makes a winning-winning situation to all parties, the environment and the business. Not only new buildings are being qualified to a stamp approve, also old buildings are bringing solutions to become green and get the certification ““Older buildings are just as likely to be energy efficient and be among the top performers and attain an ENERGY STAR certification as newer buildings are. In fact, a number of cities that have benchmarking laws have done their own studies of all the buildings reporting data. Pretty much across the board what they’ve found is that the age of the building is not correlated with their energy performance at all, meaning older buildings are just as likely to be good performers.”